As the world economy evolves into a global marketplace,
competition presents itself in the form of domestic and
international players. The recent downturn in the global
economy has heightened the need to gain a competitive edge
in the discrete and process manufacturing industries. Firms are
continuously striving to increase their productivity, profitability,
safety and sustainability. As competition increases, companies
willing to invest in various automation solutions will more likely be
successful in the long-term.

With India emerging as a ¬Global Manufacturing and Supply Hub in
several areas, innovation and efficient manufacturing have become
part of the new ¬Indian Mindset. The current economic landscape
makes this an ideal time to launch an Automation Technology Fair
in India. The first automation show, showcasing global competency,
the India Automation Technology Fair, IATF 2013, organised
by Automation Industry Association (AIA) and Messe MŁnchen
International India (MMI India), recently.

Nandakumar, President, Automation Industry Association (AIA),
Chairman & Managing Director, Chemtrols Industries Limited said,
"AIA brings together for the first time, all the leading automation
technology players in the country for a common and customer
focused cause. The Association s primary aim will be to increase
knowledge and awareness levels when it comes to cutting edge
automation technologies and help Indian industry leverage these for
greater productivity, efficiency, quality and consistency - the key to
global competitiveness. India is behind the curve on deployment of
automation technologies in manufacturing and maintenance. Less
than 1 per cent of manufacturing GDP comes from automation and
instrumentation, whereas in developed economies the percentage
is more like 5 per cent. By 2020 India needs to go Global and that is
possible only with enhanced investment in automation."

In the current automation scenario, islands of automation have
created several challenges because the lack of integration has
impacted operational excellence improvements. While developed
countries have already started focusing on the integration aspect,
the Indian manufacturing sector is still nascent with regards to the
current levels of adoption of manufacturing solutions.

Raghavendra Rao, Vice President, Frost & Sullivan said, "India
is a perpetual nation having perpetual growth. Challenges in
automation adoption that we face in India are availability of cheaper
alternatives, lack of clarity on ROI and lack of clear regulation. India
has the largest bank of skilled workforce where there is money,
market and people. We have to give a serious look on lower margin
and higher growth."

He further added, "Increasing demand from manufacturing activities
in the country has forced manufacturers across different sectors
to focus on attaining operational excellence. This would also
necessitate the integration of automation and business systems,
resulting in a shift towards the global trend of complete shop floor
to top floor integration."

Automation Adoption in Key Sectors
In India, levels of automation in most industries are far from their
respective global norms. The penetration of automation in sectors
such as food and beverages and mining, is below global standards
and hence these sectors lag behind in terms of competitiveness.
Apart from financial aspects, one should view spend on technology
as a performance enhancer, rather than an expense.

Power, oil and gas and automotive industries have always been
leading adopters of different automation technologies. The complexity of processes and need to optimise plant operations as
well as enhance margins has resulted in oil and gas being at the
forefront of automation adoption.

U S Deshmukh, Group General Manager, ONGC, said, ĄOil and gas
industry is the major user of automation. Automation industry can
lead us to a better environment. Safety and security is the major
concern in oil and gas sector and automation plays a major role in
providing security solutions.

Given the rapid progress in the automotive sector and the fact that
India is becoming an innovation hub for small cars, the adoption
of automation technologies has increased. Following the progress
made by these sectors, other sectors such as chemicals and
fertilisers, cement, and metals among others have started to realise
the benefits of adopting advanced automation technologies.

Investing in intelligent automation and control systems to optimise
manufacturing, plant optimisation, and control and process
monitoring systems, is the way forward for the Indian manufacturing
industry. In this increasingly competitive and globalised
environment, India continues to experience inertia in keeping up
with global trends or in adopting new technological innovations.

As India progresses in its pursuit to become one of the preferred
manufacturing destinations, current practices have to make way for
adoption of 'everything smart'.

Manufacturing Sector to Drive the Next Phase of Economic Growth:
Manufacturing has been an important contributor to India's GDP,
revolving rapidly over the last two decades, since economic
liberalisation in 1991. The manufacturing sector has contributed
a consistent share of around 15 per cent of the GDP over the last
decade. However, compared to global benchmarks of manufacturing s
contribution to GDP in advanced economies, it is evident that Indian
manufacturing has massive untapped potential. One of the critical
aspects that finds resonance in global manufacturing is the focus on
Automation as a change enabler. Developed economies and certain
developing economies have adopted automation to improve process
efficiency and quality parameters.

Manufacturing will play a vital role in India s survival from turbulent
economic crisis and in driving India s economic growth. But, it is
automation that will make the difference between survival and
thriving, and, between incremental contribution and rapid industrial
revolution. Automation market participants with their global expertise
and vast resources have the potential to transform current Indian
manufacturing practices and bring these on par with global standards.

This will enable manufacturers to attain global manufacturing
competitiveness even as they capitalise on India s inherent strengths.
India has witnessed a growth of 10.9 per cent in capital investments
in manufacturing over 2004-11. Manufacturing has accounted
for nearly 15.4 per cent of the GDP in FY 2011-2012, belying
its immense actual potential. If India is to supersede the current
advanced economies, the capital investments in manufacturing
automation should touch USD 2000 million by 2016.

The report highlights that the advance economies continue to
drive innovation in manufacturing and automation sectors. It stats,
"Manufacturing in advanced economies has gone through various
stages of evolution, shapes at each stage by the imperatives of its
time. The present is no exception." Futher, the report talks about
how automation has evolved "to meet the changing needs of the
manufacturing and business environment."